Operations Diagnostic
Establishing “One Company” Organization and Operations to Realize Cost Synergies at Direct Marketing Services Company
Conducted a 5-week operations diagnostic of a recently acquired portfolio company to identify cost reduction opportunities and establish organizational and operations end-visions. Gotham undertook an extensive analytic effort to reconcile and align data from 3 separate, independently operating systems corresponding to each business unit and create in-depth profiles of purchasing spend and labor efficiency. We also identified opportunities to improve salesforce effectiveness, including salesforce restructuring and a new compensation system. Finally, working with management, Gotham developed a “One Company” organizational structure to eliminate disconnect and facilitate savings opportunity capture within and among the 3 business units. Following the diagnostic, management launched efforts to capture these opportunities, which were expected to improve the company’s EBITDA margins by 6+ percentage points.
Show DetailsDiagnosing Performance Deficiencies at Data-rich But Information-poor Branch-based Underperforming Business to Identify EBITDA Improvement Opportunities/Plan for Their Capture at Heavy Equipment Rental Company
Identified $6.4MM in quick-win EBITDA improvement opportunity in rental, parts, and services businesses by analyzing the company’s revenue drivers, cost structure, and equipment utilization. Working with management, developed a detailed 6-month implementation plan to enable rapid capture of operational improvement opportunities and to establish long-term strategic initiatives to drive top- and bottom-line growth. Management is successfully implementing value creation plan and, within 3 months, has already captured $3MM in EBITDA improvements (vs. same quarter in previous year).
Show DetailsAvoiding Need for Capital Investment via Throughput Improvement and Cost Reduction at Private Label Nutraceutical Company
Identified significant manufacturing capacity available through a variety of key throughput levers, including: reduced number and shortened length of changeovers; reduced frequency and duration of downtime; and increased speed in bottleneck equipment. In addition, identified 35% reduction in direct labor cost. Following our implementation plan, company increased EBITDA by $7MM by the end of the fiscal year and the PE firm successfully sold the company.
Show DetailsOperational Basics, Waste Reduction, and Productivity Improvements to Turn Around Declining Performance at Stationary Products Manufacturer
Identified $2+MM in opportunity from focusing on operational basics, e.g., measurement & reporting, material and labor procedures, and production scheduling. Implemented a paper waste measurement system to identify major sources of loss and then addressed root cause issues (e.g., setup waste, end-of-roll waste, material handling waste, and in-process waste). Within 6 months, material waste more than halved (from the original 40%+ levels) and labor productivity went up 15%.
Show DetailsThroughput and Cost Improvements to Become a Competitive Full-line Beverage Co-packer
2 week diagnostic that benchmarked conversion costs for the company and identified 15-20% in cost reduction opportunities. The effort indicated that with improved scheduling processes and more efficient use of labor, the company could save at least $1.5MM in the short-term. Recommendations also included putting in place a system to track true costs and performance to enable longer-term improvements.
Show DetailsRapid Inventory and Supply Chain Cost Structure Diagnostic at Niche Apparel Producer
Conducted an inventory and cost structure diagnostic and created a plan for capture of opportunities at a recently acquired private equity portfolio company. Identified $11+MM in inventory reduction, $1.2–1.9+MM in overhead expense reduction, and $0.4–1.2MM in freight cost reduction opportunities.
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